Even though local unemployment exceeded 10% in February, CBRE says many investors see opportunity as property values continue declining. In fact, Marcus & Millichap believes development-minded buyers may intensify searches for sites in paths of future population growth, particularly western Pasco County and the Southshore area of Hillsborough County.

"As Tampa and other major markets in Florida proceed into a period of diminished property performance, retailers and investors remain largely upbeat about the metro's long-term prospects," notes Bryn Merrey, regional manager of Marcus & Millichap's Tampa office. "Optimism is supported by the projected addition of more than 20,000 households annually over the next five years and the impact those new residents will have on retail space demand."

Cap rates for class A multi-tenant retail properties started the year at approximately 8%, with class B assets pushing toward 9%, according to Merrey. "Older assets in established trade areas with barriers to entry, such as portions of southern Pinellas or central Hillsborough counties, may receive the greatest attention in the months ahead," he says.

A total of 1.4 million square feet of new retail space is set to be completed this year, well below the 3.6 million square feet delivered areawide in 2008, Marcus & Millichap states. The largest projects are Cypress Creek Town Center, which will bring one million square feet to south Pasco County, and the 353,000-square-foot Ikea store just east of Downtown Tampa, scheduled to open May 6.